The Full Form of ‘SEBI’ in Business is ‘Securities and Exchange Board of India’.
Full Form of SEBI
The full form of SEBI in business is Securities and Exchange Board of India. Established by the Government of India in 1988, SEBI is the regulator for the securities market in India. SEBI’s primary objective is to protect the interests of investors in securities and to promote the development of, and regulate, the securities industry in India. It is also responsible for regulating all activities related to capital markets such as public offerings by companies, licensing of stockbrokers and other intermediaries, overseeing corporate governance standards, stock exchanges, mutual funds and other financial institutions.
SEBI has several powers which include issuing directives to companies listed on stock exchanges, registering and regulating brokers, merchant bankers, portfolio managers and other entities associated with capital market operations; enforcing rules on insider trading; prohibiting fraudulent transactions; preventing price rigging or manipulation; ensuring that fair practices are followed by all participants in the market; protecting investor interests through awareness campaigns about investment opportunities; monitoring compliance with laws governing capital markets operations; regulating takeovers and mergers; collecting information from various sources including media reports related to any suspicious dealings or large transactions which can impact prices or cause instability in the market.
SEBI works closely with several key organizations like Reserve Bank of India (RBI), Insurance Regulatory & Development Authority (IRDAI), Pension Fund Regulatory & Development Authority (PFRDA) etc., to ensure that overall financial stability is maintained in India. Some major initiatives taken by SEBI includes launching a new electronic platform called ‘Mutual Funds Platform’ to help retail investors manage their investments better; setting up an Investor Education and Protection Fund (IEPF) which provides compensation for investors suffering financial losses due to fraudulent practices or defaults by issuers/intermediaries; making it mandatory for listed companies to appoint independent directors on their board who will act as watchdogs over management decisions taken by company executives.
SEBI has also introduced a graded surveillance system which gives it powers to monitor activities of different types of entities such as brokers, stock exchanges etc., according to their risk profile. This system helps it detect any suspicious activity quickly. Moreover, SEBI has recently launched a mobile app called ‘Sebi Investor Helpline’. This app provides various services such as investment advice, grievance redressal facility and access to various e-learning resources related to capital market investments.
In conclusion, SEBI plays an important role in maintaining orderly conditions in Indian capital markets so that investors can transact confidently without fear of manipulation or frauds. Its various initiatives have helped make Indian markets more transparent and efficient thus encouraging more people from both domestic as well as foreign countries towards investing in Indian markets.
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